Intermarche, Eroski pool their European resources
which will increase their European buying power and allow each
company to benefit from the other's expertise. Other companies
could join the union in due course.
Intermarche, the independent French supermarket group, has joined forces with Eroski, the Spanish retailer, to form a pan-European buying group which is designed to create economies of scale for the two groups in both Spain and elsewhere on the Continent.
The two companies said they would also share their combined know-how in the areas of own label brands, product ranges and management systems.
Intermarche currently has 109 stores in Spain, and under the terms of the agreement it will delegate the buying duties for these stores to Eroski. The Spanish group in turn will join Agenor, the European buying group which Intermarche created after its acquisition of the German Spar group and which handles all the international purchases for the Intermarche group.
The new joint operation will be based in Geneva, Switzerland, where Agenor is currently based, and will be headed by Constan Dacosta, the president of Eroski. The two parties said they would also look for other partners from the European retail sector "with the same values and the same objectives" in the future.
With a total turnover of around €41.75 billion, the new business will be the second largest in the European food retail sector behind Carrefour. Intermarche's 2001 sales were €37.2 billion, while those of Eroski reached €4.6 billion.
Eroski said it would benefit in particular from Intermarche's experience in non-food retailing, while Intermarche is hoping in particular to reap the benefits of stronger management in Spain, where its stores are relative newcomers and are yet to make any significant impact.
The Basque company is already the number two player in Spain with more than 1,800 stores, and it also has a handful of stores in the south of France. It operates 56 Eroski and Maxi hypermarkets, 800 Consum supermarkets, 700 Charter self-service stores, 36 petrol stations, 25 cash & carry outlets, 150 travel agents, 10 Forum sports shops, 84 perfume retailers, five restaurants and 22 buying platforms.
For its part, Intermarche has operations in eight European countries - France, Spain, Portugal, Belgium, Germany, Romania, Poland and Bosnia - under the Intermarche, Ecomarche, Netto, Restaumarche, Relais des Mousquetaires, Bricomarche, Logimarche, Vetimarche, Stationamarche, Espace Temps, Spar and Interex fascias. It also has non-food alliances in Canada, Germany, South Africa, the UK and Denmark.
